Redhall logo

RHL - Redhall News Story

1.6p 0.0  0.0%

Last Trade - 23/05/19

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £37.8m
Position in Universe th / 1819

Redhall Group PLC - Preliminary Results - Part 2

Wed 7th December, 2016 7:00am
- Part 2: For the preceding part double click  ID:nRSG1332Ra 

intangible assets of £nil (2015: £120,000). 
 
 Geographical segments                                                                               
 2016                                                                                2015          
                                                                                           
 Revenue by destination                                                              £000  £000      
                                                                                                   
 United Kingdom                                                                      487   23,302    
 Other European Union countries                                                      -     -         
 Other overseas locations                                                            -     830       
                                                                                     487   24,132    
 All of the Group's assets and capital expenditure originate in the United Kingdom.                  
 Analysis of revenue by category                                                                     
                                                                                     2016  2015      
                                                                                     £000  £000      
 Sales of goods manufactured by the Group                                            -     -         
 Sales of services                                                                   487   24,132    
                                                                                                     
                                                                                     487   24,132    
                                                                                                     
 
 
Practically all of the Group's revenue is considered to be contract revenue as
defined by IAS11. 
 
4. FINANCIAL INCOME AND EXPENSES 
 
                                         2016   2015       
 Financial expenses                                        
 Interest on bank loans and overdrafts   (703)  (1,262)    
 Net finance expense on pension scheme*  (154)  (149)      
                                                           
                                         (857)  (1,411)    
                                                           
 
 
* Includes £85,000 of pension administration expenses paid for by the Company
(2015: £89,000). 
 
5. TAX EXPENSE 
 
                                                                            2016     2015        
 (a) Recognised in the income statement                                     £000     £000        
                                                                                               
 Current tax charge:                                                                             
 Current year                                                               -        -           
 Adjustment in respect of prior years                                       107      -           
 Current tax charge                                                         107      -           
                                                                                                 
 Deferred tax credit                                                        (312)    (583)       
 Effect of change of tax rate                                               96       9           
 Prior years                                                                (298)    (2)         
 Deferred tax credit                                                        (514)    (576)       
 Tax credit in the income statement                                         (407)    (576)       
                                                                            2016     2015        
 (b) Reconciliation of the effective tax rate                               £000     £000        
                                                                                               
 Loss before tax - continuing operations                                    1,094    (3,643)     
 Loss before tax - discontinued operations                                  983      (9,094)     
 Loss before tax                                                            (2,077)  (12,737)    
 Tax at standard rate of UK corporation tax of 20% (2015: 20.5%)            (415)    (2,611)     
 Expenses not deductible for tax purposes                                   48       131         
 Income not taxable for tax purposes                                        (31)     -           
 Tax losses not recognised                                                  86       1,065       
 Adjustments in relation to prior periods                                   (191)    (2)         
 Change in tax rate                                                         96       11          
 Non deductible loss on disposal of investment                              -        830         
                                                                                                 
 Tax credit in the income statement                                         (407)    (576)       
                                                                                                 
 Tax credit in the income statement - continuing operations                 407      551         
 Tax credit in the income statement - discontinued operations               -        25          
                                                                            2016     2015        
                                                                            £000     £000        
 (c) Deferred tax (credit)/charge recognised in other comprehensive income                       
 Actuarial losses                                                           (318)    (102)       
 Accelerated capital allowances                                             (46)     1           
                                                                            (364)    (101)       
                                                                                                 
 
 
6. DEFERRED TAX ASSETS AND LIABILITIES 
 
Recognised deferred tax assets and liabilities 
 
The net deferred tax liability at the year-end and movement during the year is
analysed as follows: 
 
                                                                                                      Credit/(charge) to                                                              
                                                                   Balance as at                      Credit              Disposal of         Balance as at                         
                                                                   Consolidated                                           
                                                                   1 October 2015   Income Statement  directly to equity  investment          30 September 2016                     
                                                                   £000                               £000                £000                £000               £000                 
 Accelerated capital allowances/revaluation gains on fixed assets  170                                46                  46                  -                  262                  
 Short term timing differences                                     30                                 93                  -                   -                  123                  
 Losses                                                            528                                128                 -                   -                  656                  
 Buildings                                                         (160)                              160                 -                   -                  -                    
 Intangible assets                                                 (803)                              152                 -                   -                  (651)                
 Retirement benefits                                               389                                (65)                318                 -                  642                  
                                                                   154                                514                 364                 -                  1,032                
                                                                   Balance as at                      Credit/(charge) to  (Charge)/credit     Disposal of        Balance as at        
                                                                   Consolidated                                           
                                                                   1 October 2014                     Income Statement    directly to equity  investment         30 September 2015    
                                                                   £000                               £000                £000                £000               £000                 
 Accelerated capital allowances                                    196                                124                 (1)                 (149)              170                  
 Short term timing differences                                     56                                 (20)                -                   (6)                30                   
 Losses                                                            508                                320                 -                   (300)              528                  
 Buildings                                                         (275)                              115                 -                   -                  (160)                
 Intangible assets                                                 (892)                              89                  -                   -                  (803)                
 Retirement benefits                                               339                                (52)                102                 -                  389                  
                                                                   (68)                               576                 101                 (455)              154                  
 
 
Unrecognised deferred tax assets 
 
Deferred tax assets have not been recognised on tax losses of £16,200,000
(2015: £16,300,000) as their recovery is insufficiently certain in the longer
term. £14,100,000 are related to the discontinued site services segment. 
 
Effect of reduction in the main rate of Corporation tax 
 
The reduction in the main rate of corporation tax from 20% to 19% effective
from 1 April 2015 was substantively enacted on 26 October 2015. It was further
announced that the rate will be reduced to 17% effective from 6 September
2016. Accordingly, deferred tax balances have been recognised at the reduced
rate of 17% in theses financial statements. 
 
7. LOSS PER SHARE 
 
Basic and diluted loss per share 
 
The calculation of the basic loss per share of 0.83p (30 September 2015: loss
per share 24.57p) is based on 200,050,084 shares (30 September 
 
2015: 49,491,094:) being the weighted average number of shares in issue
throughout the period and on a loss of £1,670,000 (30 September 2015: loss of
£12,161,000). 
 
The loss attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted loss per share for
both the year ended 30 September 2016 and 30 September 2015 are identical to
those used for the basic loss per share. This is because the exercise of share
options would have the effect of reducing the loss per share and is,
therefore, not a dilution under the terms of IAS33. The dilutive potential
ordinary shares are therefore not included in the table below. At 30 September
2016 there were 27,640,436 outstanding options under relevant schemes and 18.5
million shares under option to funds managed by Henderson. These may impact
dilutive earnings per share in future. 
 
Adjusted earnings per share 
 
The Directors believe that helpful additional earnings per share calculations
are earnings per share on adjusted bases (i.e. based on profit before
exceptional items, IFRS 2 charge and amortisation of acquired intangible
assets and on a fully taxed basis). The basic and adjusted weighted average
numbers of shares and the adjusted earnings have been calculated as follows: 
 
                                                                2016         2015          
                                                                Number       Number        
 Basic weighted average number of shares                        200,050,684  49,491,094    
 Dilutive potential ordinary shares arising from share options  -            -             
 Adjusted weighted average number of shares                     200,050,684  49,491,094    
 Earnings:                                                      £000         £000          
                                                                                         
 Loss before tax                                                (2,077)      (12,737)      
 Exceptional items                                              1,380        9,345         
 Amortisation of acquired intangible assets                     323          441           
 IFRS 2 charge/(credit)                                         373          (1)           
 Adjusted loss before tax                                       (1)          (2,952)       
 Tax at 20% (2015: 20.5%)                                       -            605           
 Adjusted loss after tax                                        (1)          (2,347)       
 Adjusted, fully taxed basic loss per share                     0.00p        (4.74)p       
 Adjusted, fully taxed diluted loss per share                   0.00p        (4.74)p       
 Continuing operations                                                                     
 £000                                                           £000                     
                                                                             
 Loss before tax                                                (1,094)      (3,643)       
 Exceptional items                                              397          1,240         
 Amortisation of acquired intangible assets                     323          321           
 IFRS 2 charge/(credit)                                         373          (1)           
 Adjusted loss before tax                                       (1)          (2,083)       
 Tax at 20% (2015: 20.5%)                                       -            427           
 Adjusted loss after tax                                        (1)          (1,656)       
 Adjusted, fully taxed diluted loss per share                   0.00p        (3.34)p       
 Discontinued operations                                                                   
 £000                                                           £000                     
                                                                             
 Loss before tax                                                (983)        (9,094)       
 Exceptional items                                              983          8,105         
 Amortisation of acquired intangible assets                     -            120           
 Adjusted loss before tax                                       -            (869)         
 Tax at 20% (2015: 20.5%)                                       -            178           
 Adjusted loss after tax                                        -            (691)         
 Adjusted, fully taxed diluted loss per share                   0.00p        (1.40)p       
 
 
8. RETIREMENT BENEFIT OBLIGATION 
 
The Group sponsors a defined benefit pension scheme in the United Kingdom, the
Booth Industries Group PLC Staff Pension and Life Assurance Scheme ("the Booth
Scheme") and operates a small number of defined contribution pension schemes
and makes contributions to personal pension plans. 
 
a) Defined benefit scheme 
 
Pension benefits are linked to the members' final pensionable salaries and
service at their retirement date (or date of leaving if earlier). The scheme
is closed to new entrants. The scheme is governed by a Board of Trustees who
meet on a quarterly basis. The Group has opted to recognise all actuarial
gains and losses immediately through the Consolidated Statement of
Comprehensive Income. 
 
The most recent formal actuarial valuation was carried out as at 6 April 2015.
The results of this valuation have been updated to 30 September 2016 by an
independent qualified actuary. The assumptions used were as follows: 
 
 Assumptions                                                                                                                                                                                      
 The following were the principle actuarial assumptions at the reporting date:                                                                                                                    
 2016                                                                           2015                                                                                                            
                                                                                                                                        
 Discount rate                                                                  2.40%                                                   3.70%                                                     
 Retail Prices Index (RPI) inflation                                            3.00%                                                   2.90%                                                     
 Consumer Prices Index (CPI) inflation                                          2.00%                                                   1.90%                                                     
 Salary increases                                                               n/a                                                     1.90%                                                     
 Rate of increases to pensions in payment subject to inflationary increases:    2.90%                                                                                                             
 - RPI capped at 5% pa                                                          2.80%                                                                                                           
 - RPI capped at 2.5% pa                                                        2.30%                                                   2.20%                                                     
 - CPI capped at 3% pa                                                          1.80%                                                   1.70%                                                     
 - CPI capped at 5% pa with minimum 3% pa                                       3.10%                                                   3.10%                                                     
 Revaluation of deferred pensions (non-GMP)                                     2.00%                                                   1.90%                                                     
 Mortality basis pre and post retirement                                        S2PMA/S2PFA    +2 years                                 S2PMA/S2PFA    +2 years                                   
                                                                                CMI 2015 with a long term rate of improvement of 1% pa  CMI 2014 with a long term rate of improvement of 1% pa    
 Allowance for cash commutation                                                 95 % of maximum                                         95 % of maximum                                           
 Proportion married                                                             80% for males70% for females                            80% for males70% for females                              
                                                                                                                                                                                                  
 
 
 Asset class                                          2016                         2015          
                                       Market value   % of total     Market value  % of total    
                                       scheme assets  scheme assets                
                                       £000                          £000                        
 Equities                              12,167         54%            9,657         48%           
 DGF's                                 996            5%             -             -             
 Bonds                                 2,285          10%            4,452         22%           
 Gilts                                 4,051          18%            3,747         19%           
 LDI                                   1,134          5%             -             -             
 Property                              1,662          7%             1,877         9%            
 Cash                                  162            1%             307           2%            
 Total                                 22,457         100%           20,040        100%          
 Actual return on assets over period:  3,029                         431                         
 
 
Pension expense 
 
 Amounts recognised within administrative expenses within the income statement are:                
                                                                                                   
                                                                                     2016   2015   
                                                                                     £000   £000   
 Charge for current service cost                                                     (49)   (86)   
 Administration costs                                                                (52)   (50)   
                                                                                     (101)  (136)  
 
 
Following the 6 April 2015 valuation the Company agreed to pay annual
contributions of £365,000 for the year to 5 April 2016, followed by
contributions of £140,000 for the following 2 years. Contributions will then
increase to £305,000 per annum until 5 April 2027.  Total employer
contributions in 2016 were £297,000 (2015: £443,000). 
 
 The amounts credited/(charged) to financial income and expense are:                
                                                                      2016   2015   
                                                                      £000   £000   
 Return on assets recorded as interest*                               645    687    
 Interest on pension scheme liabilities                               (799)  (836)  
 Net financial expense                                                (154)  (149)  
 
 
* Includes £85,000 of pension administration expenses paid for by the Company
(2015: £89,000). 
 
Total actuarial gains and losses recognised in the consolidated statement of
comprehensive income 
 
The cumulative actuarial loss recognised in the consolidated statement of
comprehensive income from 1 October 2006 (being the transition date to the
adoption of International Financial Reporting Standards) is £4,743,000 (2015:
loss £2,780,000). 
 
 Analysis of movement in retirement benefit obligation                  
                                                        2016    2015    
                                                        £000    £000    
 Retirement benefit obligation at start of the year     22,000  21,854  
 Current service cost                                   49      86      
 Interest cost on retirement benefit obligation         799     836     
 Contributions by employees                             18      28      
 Benefits paid and transfers out                        (875)   (968)   
 Actuarial losses                                       4,262   164     
 Retirement benefit obligation at end of year           26,253  22,000  
 
 
Change in fair value of scheme assets during the year 
 
                                        2016    2015    
                                        £000    £000    
 Fair value at start of the year        20,040  20,156  
 Interest income                        730     776     
 Actual return on assets less interest  2,299   (345)   
 Employer contributions                 297     443     
 Member contributions                   18      28      
 Benefits paid                          (875)   (968)   
 Administration costs                   (52)    (50)    
 Fair value at end of the year          22,457  20,040  
 
 
Sensitivity analysis 
 
Reasonably possible changes at the reporting date to one of the relevant
actuarial assumptions, holding other assumptions constant, would have affected
the defined benefit obligation by the percentage amounts shown below: 
 
                                           2016                          2015         
                          Change in        Change in        Change in    Change in    
 Assumption               defined benefit  defined benefit               
 assumption               obligation       assumption       obligation              
 Discount rate            +/- 0.5% pa      + 8% / - 7%      +/- 0.5% pa  +/- 7%       
 RPI and CPI inflation    +/- 0.5% pa      +/- 3%           +/- 0.5% pa  +/- 3%       
 Future salary increases  n/a              n/a              +/- 0.5% pa  +/- 1%       
 Assumed life expectancy  + 1 year         + 4%             + 1 year     + 3%         
                                                                                      
 
 
b) Defined contribution schemes and personal pension plans 
 
The Group operates a small number of defined contribution pension schemes and
contributes to a number of personal pension plans. The total expense for these
schemes during the year was £469,000 (2015: £1,022,000). 
 
9. BASIS OF PREPARATION 
 
The financial information set out above for the years ended 30 September 2016
and 2015 ("the financial information"), has been prepared with consistent
accounting policies and in accordance with the International Financial
Reporting Standards ("IFRS") as adopted by the European Union ("EU") and are
effective at 30 September 2016. 
 
The financial information does not constitute the statutory financial
statements (as defined by S434 of the Companies Act 2006) for those years. The
2016 financial statements, upon which the auditors issued an unqualified
opinion and did not contain a statement either under sections 498(2) or 498(3)
of the Companies Act 2006, have not yet been delivered to the Registrar. 
 
The 2015 financial statements have been delivered to the Registrar and
included the auditors' report which was unqualified and did not contain a
statement either under sections 498(2) or 498(3) of the Companies Act 2006. 
 
The annual report and accounts for the year ended 30 September 2016 will be
posted to shareholders. Copies will be available from the Company's registered
office, Unit 3 Calder Close, Wakefield WF4 3BA and will be made available on
the Company's website at www.redhallgroup.co.uk. 
 
This information is provided by RNS
The company news service from the London Stock Exchange
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.